US automaker General Motors Corp (GM) has backed out of its joint venture with Yulon Motor Co (裕隆汽車) by selling its 49 percent stake in Yulon GM Motors Co (裕隆通用) for a symbolic NT$1 to Yulon.
The transaction was approved by Yulon’s board on Thursday, along with a proposal to provide Yulon GM with a NT$210 million (US$6.36 million) capital infusion.
Yulon senior vice president Han Chen-ping (韓正平) said by telephone yesterday that the local automaker “will continue building and selling GM cars without interruption. Moreover, additional GM models will continue to be introduced to Taiwan.”
Han said Yulon GM dealerships would remain intact, rebuffing rumors that some dealerships might be changed to sell Yulon’s Luxgen cars, which are scheduled for release next year.
Despite a slowdown in auto sales worldwide, Yulon was confident that its Luxgen pilot electro-cars would be popular.
The “luxury and intelligent” vehicle would combine Yulon’s expertise in auto making, local information technology and the most advanced energy technology, Han said.